This tax credit is for small business owners, defined as having 100 or fewer full-time W-2 employees in 2020, and 500 or fewer W-2 full-time employees in 2021. Congress passed the CARES Act in March 2020 to launch the program to provide financial relief to businesses affected by COVID-19. Congress has since modified or extended the program several times, which now principally applies only to 1st – 3rd Quarters of 2021.
As of early November 2023, Lifetime Advisors, LLC no longer assists new applicants with new ERC claims. If you need assistance with your new potential ERC claim, try searching the database accessible here: RPO Preparer Directory (treasury.gov). Under current law, you have until April 15, 2025, to file your claim for ERC for the 2021 tax periods.
Note: The amount of your ERC reduces the amount that you are allowed to report as wage expense on your income tax return for the tax year in which the qualified wages were paid or incurred. Therefore, taxpayers applying for or receiving the ERC tax credit should consult with their tax professional to determine the amount of wage expense adjustment to include on their amended business or income tax returns.